Abstract:The Spatial or Network Autoregressive model (SAR, NAM) is popular for modeling the influence network connected neighbors exert on the outcome of individuals. However, many authors have noted that the causal network influence or contagion cannot be identified from observational data due to the presence of homophily. We propose a latent homophily-adjusted spatial autoregressive model for networked responses to identify the causal contagion and contextual effects. The latent homophily is estimated from the spectr… Show more
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